Now -- Let's Talk Benefits!

 
Jun 05, 2002

Tips from Lawrence Stuenkel, Lawrence and Allen, Inc.

Yes, benefits are nearly as important as salary! Outplacement expert Lawrence Stuenkel reveals the perks you should ask about before you accept that job.

Greenville, SC (June 2002) -- Imagine that you're the victim of a recent downsizing and your job search campaign is well underway. In fact, you're in the running for three separate positions. Right now, your biggest concern is salary. You've pretty much decided that, in the unlikely event that you're offered all three jobs, salary will be the deciding factor. This is not surprising. After all, income is the most tangible and visible reward for your efforts. But there's something you're overlooking in your pursuit of a hefty paycheck. The "B-word" . . . benefits.

"Most applicants don't place a premium on benefits," says Lawrence Stuenkel, Senior Partner of outplacement firm Lawrence & Allen, Inc. and author of From Here To There: A Self-Paced Program for Transition in Employment, 5th Edition (Facts on Demand Press, April 2002, ISBN: 1-889150-31-2, $32.00). "That's a mistake. People don't realize how costly benefits are to an employer. Sometimes, benefits offered range in excess of 40 percent of the salary dollar! That makes them extremely valuable."

"Therefore, although I don't recommend bringing up the subject until after an offer has been extended, I do suggest that job seekers take a proactive approach on the subject," he adds. "Before you accept a job, do your research. Determine which benefits are important to you, and make sure the company offers them. If in doubt, ask the HR person or whomever you're dealing with. Don't assume anything."

Here are just a few of the benefits Stuenkel says you might wish to discuss before accepting a position:

  • Signing bonuses. Signing bonuses generally range in the 5 to 10 percent category and can run up to as high as 75 percent, or even 100 percent of the total amount of the salary offers. Signing bonuses in the 75 to 100 percent range are not unheard of but are extremely rare. For the recent MBA or MS graduate, signing bonuses can go up to approximately $20,000.
  • Insurance. Obviously, not all health insurance is the same. It really pays to do your research in this area. Does the company's policy cover oral surgery? Psychotherapy? Eye care? Is dental insurance offered? What about long-term or short-term disability insurance? Life insurance? The best kind of insurance is the flexible "cafeteria style" plan, where employees design the plan to suit their needs. In the same ball park is the new "executive physical" trend: some corporations-in an effort to keep top-level employees healthy over the long term-schedule and pay for regular physical exams.
  • Pension or 401K retirement plans. Vesting under these plans differs from company to company, as does the amount of contribution a company will fund for its employees. One of the best ways to determine how lucrative a company's pension or 401K plan would be is to ask Human Resources to do a sample pension calculation using some very conservative estimates of salary, career life with the company, etc.
  • "Work incentive" benefits. Does the company offer profit sharing? Stock options? Performance bonuses? Regular promotions and raises? These are great benefits because they tie your performance into overall company success-and they're often a sign of a stable, healthy, motivated organization.
  • Vacations, holidays, paid sick leave and personal days. This one is pretty self-explanatory. Be sure you're clear up front exactly how many days off you get. Sometimes companies are vague (perhaps intentionally) about how days off are categorized and how long you must work to accumulate them.
  • Flexible work options. This category may include:
    1. Flexible hours: If you want to work during "off hours" in order to avoid traffic jams, or to be home when your child gets off the bus, is the company receptive?
    2. Telecommuting: Would the company allow you to work from home, either full time or perhaps three days a week?
    3. Job-sharing: This phenomenon is growing in popularity, as it allows two people to divide work responsibilities in order that both may have more free time.
    4. Comp time: If you work 10 hours a day Monday through Thursday one week, will the company allow you to take Friday off?
  • Professional development. Will the company reimburse you for tuition spent in professional development endeavors? Will it send you to seminars and conferences? Will it pay professional association fees for you?
  • Company car, car allowance and work equipment. If you have to travel a lot for your job, it's reasonable to expect your company to provide a means of transportation. Also, if you expect to work a lot outside the office, the company should provide a laptop computer, a cell phone and possibly other equipment.
  • "Lifestyle" perks. Does the company offer onsite childcare and/or eldercare, or perhaps have an arrangement with a nearby center? These are extremely attractive options for employees with small children or aging parents. What about a health club? Executive dining privileges? Sabbaticals? Does the company provide personal tax planning? Some of these may sound like luxuries, but they are very important to people who have certain lifestyle needs and/or desires.
There's one more benefit you may never have considered that is very important, Stuenkel adds. Outplacement services. That's right. In the event that you're downsized at some future time, it's nice to know the company won't just "cut you loose."

"I know it seems strange to be thinking about losing the job that you're trying to land," says Stuenkel. "But it's a possibility. Indeed, it may well be why you're seeking a job in the first place! Conscientious companies will hire an outplacement firm to help their downsized employees find new work. And of course, if you're ever transferred or relocated, if the firm can help your spouse or significant other find a job, too."

"Think of outplacement services as 'job loss' insurance," he adds. "In a time of economic instability, knowing you'll have support in the event of a lay-off is comforting. Your new company can't promise to provide employment for you forever-but it can promise to help you make an unforeseen transition as smooth and painless as possible."

In 1977, Lawrence A. Stuenkel founded the firm of Lawrence and Allen, Inc. to provide consulting services to corporations regarding the handling, separation, and assistance to employees that are affected by downsizing, restructuring, layoffs, or terminations. From Here To There: A Self-Paced Program for Transition in Employment is a comprehensive new book that is packed with helpful hints and creative approaches to finding the position that's right for you.

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